BUYER: 15250 Sonoma Drive Fee Owner LLC, Addison, Texas
SELLER: BTS Monterrey Holdings LLC, et al.,
PROPERTY: 15250 Sonoma Drive, Fort Myers
PRICE: $25.4 million
PREVIOUS PRICE: $79.56 million, March 2006
PLANS, DESCRIPTION: An investment group acquired the fee title to The Palms of Monterrey in Fort Myers for $25.4 million.
The price for the 408-unit complex equated to $62,255 per unit.
Addison, Texas-based commercial real estate company Behringer Harvard owns 90% of the investment group behind the purchase, 15250 Sonoma Drive Fee Owner LLC. DD-CTP LLC, an entity formed by developers DeBartolo Development LLC and Christian Tyler Properties LLC, owns the other 10% of the investment group.
The joint venture entity purchased the first lien mortgage on the property from the Federal Deposit Insurance Corp., receiver for Corus Bank, which previously held the mortgage. Then it negotiated a deal with the former property owner to pay it $300,000 for an uncontested foreclosure.
The 518,000-square-foot apartment complex was 96.2% occupied at the time of the sale. It has an average unit size of 1,270 square feet and an average monthly rental rate of $898 per unit.
The gated community built in 2001 consists of 17 three-story residential buildings, a clubhouse with a business center and a fitness center with a racquetball facility, a lighted tennis court, a playground and two heated pools.
Behringer Harvard has no plans to make significant renovations or improvements to the complex.
“The previous owners of The Palms of Monterrey envisioned it as a condominium community after their 2006 acquisition,” Behringer Harvard Opportunity REIT II Chief Operating Officer Samuel Gillespie says in a press release. “But changing market conditions interfered and the units were never sold.”